A Creative Solution
Situational Analysis
Commerce Bank’s office location at 110 N. Jefferson had already foreclosed. To mitigate
the bank’s losses, the property needed to be sold quickly.
Objective
Block Hawley offered the property for lease to attract investors or a user/investor if the property became 50% or more leased. Two offers were received and Block Hawley advised
the bank to accept an offer from the non-profit group because they were most likely to perform. By leveraging the buyer’s
501(c)3 status and an allocation of tax credits, the bank was able to work with the buyer to maximize its loss recovery in the sale while reducing the purchase price for the buyer.
Results
Not only was the bank able to dispose of the asset quickly, it fully recovered the debt plus the foreclosure and marketing costs!